The Digital mortgages until 2020 were the exclusive heritage of online banking. Although it is true that due to the digitization of the banking business, more and more entities were allowing certain procedures to be carried out electronically.
With the arrival of the coronavirus pandemic, mortgage activity was reduced to the maximum. To give an example, the mortgage firm in April, in full lockdown, fell by 18.4%, the lowest figure in three years.
In May, despite the timid opening of the economy, the data was even worse, with a fall of 27%, to recover 18% in September.
This situation pushed banks to accelerate the incorporation of online services in all sectors. Digital mortgages are consolidated as an alternative to the traditional application to save time, effort and money.
“The social distancing restrictions and limitations in an increase in interest in mortgages digital for many people who, until now, preferred to do it in person ”, explain sources Deusto Formation.
Specific offers for it
In summer, and in full de-escalation, Banco Santander launched its 100% digital mortgage. Thus, at a variable rate the first year is at 1.59% NIR and from the second, at Euribor + 0.79%. The fixed rate price is 1.30% TIN at 15 years and 1.70%, to be paid in 30 years.
The bank’s new mortgage can be requested online in just seven steps and the management can be specified in a period of just four weeks. The only step in person is the signature before a notary, which in Spain is mandatory even if it is done physically.
Although the pioneer was the mortgage of Coinc, with a differential on Euribor of 0.99% and without having to contract additional products. It can be requested via computer, mobile or tablet. In this case, the steps are reduced to three, which include simulation, choosing the type of credit and uploading the documentation.
To these offers are added the digital mortgages that Evo Banco and Openbank have already sold.
In the case of Evo Banco is characterized by the fact that the differential decreases as the life of the mortgage increases, reaching an APR of 0.68%. At a fixed rate, for a period of 20-30 years the APR stands at 1.60%.
In the case of Openbank, the differential over Euribor is 0.79%, while at a fixed rate the APR starts at 1.45%.
Neobanks are also getting into the finance business. This is the case of MyInvestor, which sells variable rate mortgages from Euribor plus 0.69%.
The main advantages
The possibility of managing mortgages in a totally digital way offers advantages such as saving time in carrying out procedures, since there is no travel and you can make comparisons without having to visit the entities in person.
The bank also provides benefits such as reduction of operating costs for companies. “Currently, the key is in simplify processes and drive agile online products and services. In this way, quick and easy procedures can be offered, saving time and resources ”, declare sources from Deusto Formación.
This does not mean that there are not certain reluctance on the part of customers, who may miss a closer relationship with the bank.
This could occur among customers who are not digital natives, but it is true that the use of digital banking in Spain is increasing among all age groups, contracting different services and products such as savings and deposit accounts.
The adaptation process
The importance of adapting and incorporating digital services is essential today to offer consumers products that stand out from the competition.
“The advantages stand out over the more negative aspects and they are strengthened with practice as a habit is generated ”, they point out from Deusto Formación.
“Therefore, the accelerated growth of digital mortgages from the pandemic is a growing trend that will continue to grow over time “, they add.
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